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HomeMy WebLinkAbout2018-05-22; City Council; ; Memorandum of Understanding to Continue Implementing the Innovate 78 Economic Development Initiative~ CITY COUNCIL W Staff Report Meeting Date: To: From: Staff Contact: May 22, 2018 Mayor and City Council Kevin Crawford, City Manager Joseph Stewart, Management Analyst joe.stewart@carlsbadca.gov or 760-602-4620 CA Review {2-.l(_ Subject: Memorandum of Understanding to Continue Implementing the Innovate 78 Economic Development Initiative Recommended Action Adopt a Resolution authorizing the City Manager to approve a Memorandum of Understanding (MOU) among the cities of Carlsbad, Escondido, Oceanside, San Marcos and Vista (78 Corridor Cities) for the purposes of continuing to implement the Innovate 78 Economic Development Initiative. Executive Summary The Economic Development Division focuses on strengthening the city's strong and diverse economy, advancing its position as an employment hub in San Diego County and the Southern California region. Through Innovate 78, the Division has worked with the 78 Corridor partner cities to implement comprehensive economic development strategies, recognizing that the region can better position itself to attract talent, investment, and companies. The Innovate 78 economic development collaborative was initiated in 2014 through an MOU and agreement with the San Diego Regional Economic Development Corporation (EDC) and renewed in 2016 for an additional two years of activity. Through business retention, expansion, and retention efforts, talent pipeline development, data compilation and research, communication and branding campaigns, and building partnerships, Innovate 78 has managed to achieve numerous success stories and help a large number of businesses along the 78 Corridor. To continue implementing the regional branding effort and promote economic development opportunities within the region, it is recommended that the City Council authorize the City Manager to approve a new MOU with the 78 Corridor Cities (attached to the City Council Resolution) to continue to carry out the Innovate 78 Economic Development Initiative. This MOU will allow for the execution of a one-year contract between the City of San Marcos, on behalf of the 78 Corridor Cities, and the EDC beginning June 30, 2018. Topics and tactics that will be accomplished through this new one-year MOU are included in the contract scope that San Marcos will execute with the EDC once all cities agree to the MOU. This resolution is being presented to the City Council, as the MOU needs Council approval prior to the execution of the contract with the EDC. May 22, 2018 Item #1 Page 1 of 30 Discussion On March 11, 2014, the 78 Corridor Cities entered into a five-year cooperative MOU that created guidelines for the 78 Corridor Cities to retain and attract businesses. These guidelines help the cities support and create local and regional economic development. In June 2014, the City of Carlsbad entered into a two-year agreement with the EDC on behalf of the 78 Corridor Cities, ih order to achieve continued success and build the Innovate 78 brand of supporting business expansion, attraction, and retention, and workforce development regionally. The brand also promotes creating a collaborative environment among community leaders, businesses and residents to achieve long term economic prosperity in North County. Under the contract, the 78 Corridor Cities own the "lnnovate78" brand while EDC serves the cities who agreed to the contract. The two-year contract was funded at $355,000. Each city paid one-fifth of the total budget of the contract amounting to $35,000 per city in year one and $36,000 per city in year two. Based on the overwhelming success of the collaborative model, in 2016 the 78 Corridor Cities elected to continue with an additional two-year contract with the EDC which has been administered by the City of Escondido since that time. The two-year contract was funded at $380,000 ($190,000 per year). Each city has paid one-fifth of the contract budget each of the past two years, amounting to $38,000 per city per year. In 2017, the 78 Corridor Cities have collectively supported over 100 companies and impacted over 7,800 jobs. Other notable accomplishments include holding industry roundtables in the manufacturing, diagnostics, and communications industries and launching the data dashboard on www.lnnovate78.com, which quantifies the economic health and demography of the region. The EDC has a robust economic development program which they execute for the San Diego region including strong connections with the region's largest employers, business retention and expansion protocols and data resources to highlight the 78 Corridor's business community. The 78 Corridor Cities have elected to agree to a new one-year contract with the EDC for Fiscal Year (FY) 2018-2019 in order to stay within the terms of the timeline of the MOU agreement. The City of San Marcos will administer the FY 2018-2019 contract with the EDC. Each of the 78 Corridor Cities will pay one-fifth of the contract's cost ($38,000 per city) with the total contract amounting to $190,000. This amount is the same as the City of Carlsbad has paid for the contract agreement for the past two years. Funding in the amount of $40,000 for Carlsbad's portion has been budgeted for FY 2018-2019 from the Community and Economic Development Department operating budget. Funds will be collected by the City of San Marcos which will administer the contract with the EDC. Please see the detail in the chart below: Fiscal Year Contract Amount Total Per City Contract Amount 2014-2015 Original Contract (Year 1) -Administered by City of $23,000 Carlsbad 2014-2015 Additional Services Addendum #1 $12,000 Year 1 Total $35,000 $175,000 May 22, 2018 Item #1 Page 2 of 30 Fiscal Year Contract Amount Total Per City Contract Amount 2015-2016 Original Contract (Year 2)-Administered by City of $23,000 Carlsbad 2015-2016 Additional Services Addendum #2 $13,000 Year 2 Total $36,000 $180,000 2016-2017 Contract including additional 1-year services-$38,000 Administered by City of Escondido Year 3 Total $38,000 $190,000 2017-2018 Contract including additional 2-year services-$38,000 Administered by City of Escondido Year 4 Total $38,000 $190,000 2018-2019 Contract for 1-year of services -To be administered $38,000 by City of San Marcos Year 5 Total $38,000 $190,000 Fiscal Analysis Funding for this contract will be appropriated from the Community and Economic Development Department operating budget. No additional appropriation is required. Next Steps Once the MOU is approved by all 78 Corridor Cities, the City of San Marcos will execute the contract with the EDC. When the contract is executed, the EDC in coordination with the 78 corridor cities will work to execute the scope of work to include the following on behalf of the Innovate 78 initiative: • Business Expansion, Attraction, and Retention Work • Talent Pipeline Development • Data and Research • Communications and Branding • Building Regional and Strategic Partnerships The contract with the EDC will be for an amount not to exceed $190,000 ($38,000/city) and will run through June 30, 2019. Environmental Evaluation (CEQA) Pursuant to Public Resources Code Section 21065, this action does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to scheduled meeting date. May 22, 2018 Item #1 Page 3 of 30 Exhibits 1. City Council Resolution. 2. EDC Scope of Work for Innovate 78 Contract (listed by the City of San Marcos as Exhibit "B"). 3. Consultant Services Agreement between EDC and City of San Marcos (listed by the City of San Marcos as Exhibit "C"). May 22, 2018 Item #1 Page 4 of 30 RESOLUTION NO. 2018-072 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO APPROVE A MEMORANDUM OF UNDERSTANDING AMONG THE CITIES OF CARLSBAD, ESCONDIDO, OCEANSIDE, SAN MARCOS AND VISTA FOR THE PURPOSES OF CONTINUING TO IMPLEMENT THE INNOVATE 78 ECONOMIC DEVELOPMENT INITIATIVE IN AN AMOUNT NOT TO EXCEED $38,000 WHEREAS, collaboration with the cities of 78 Corridor is recognized as a strong strategy to promote business expansion, attraction, and retention and workforce development in the region, and is in line with the economic development goals of the City of Carlsbad; and WHEREAS, in June 2014 the cities of Carlsbad, Escondido, Oceanside, San Marcos and Vista (78 Corridor Cities) agreed to participate in an economic development collaborative model called Innovate 78 to promote economic development opportunities along the 78 Corridor through a Memorandum of Understanding (MOU); and WHEREAS, to facilitate that goal, the 78 Corridor Cities selected the San Diego Regional Economic Development Corporation (EDC) as the organization best suited to provide the required services through a contract administered by the City of Carlsbad with each city providing equal financial share of the EDC work effort; and WHEREAS, in June 2016, the 78 Corridor Cities agreed to continue to work with the EDC to provide the services through a new contract administered by the City of Escondido with each city contributing equal financial share for the EDC work effort; and WHEREAS, the Innovate 78 economic collaborative model has achieved great success in supporting hundreds of companies, impacting thousands of jobs, and promoting partnerships and providing resources for the North County business community; and WHEREAS, in 2018, to continue the work of the Innovate 78 economic development initiative, the 78 Corridor Cities have designated the City of San Marcos to contract with the EDC for the required services as set forth in a MOU and contract and incorporated by this reference; and WHEREAS, in turn, each City will contribute an equal financial share of $38,000 per city for the EDC work effort, with the City of Carlsbad funds being appropriated from the Community and Economic Development Department operating budget with no additional appropriation required; and May 22, 2018 Item #1 Page 5 of 30 WHEREAS, the City Council desires at this time and deems it to be in the best public interest to approve said MOU. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the City Council authorizes the City Manager to execute the Memorandum of Understanding (Attachment A to this Resolution) on behalf of the city for the purposes of continuing to implement the Innovate 78 Economic Development Initiative. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 22nd day of May, 2018, by the following vote, to wit: AYES: NOES: ABSENT: M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard. None. None. (SEAL) May 22, 2018 Item #1 Page 6 of 30 Oceanside City Document no. 18-D0240-l 5/9/2018 (19) Page 1 of 6 MEMORANDUM OF UNDERSTANDING BY AND AMONG THE CITIES OF CARLSBAD, ESCONDIDO, OCEANSIDE, SAN MARCOS AND VISTA FOR FUNDING OF THE INNOVATE 78 ECONOMIC DEVELOPMENT INITIATIVE This Memorandum of Understanding ("MOU") is made and entered into on 2"'\'j/\ e" ~ll_, 2018 by and among the cities of Carlsbad, Escondido, Oceanside, San Marcos and Vista (individually "City" and collectively, "78 Corridor Cities" or "Cities"). RECITALS A. The 78 Corridor Cities contracted with the San Diego Regional Economic Development Corporation ("EDC") in July of 2014 to provide the required services to roll-out the regional branding effort, lnnovate78, and to promote economic development opportunities within the 78 Corridor region . B. To continue the Innovate 78 Economic Development Initiative, the 78 Corridor Cities want the City of San Marcos to contract with EDC for the required services. In turn, each City will contribute an equal financial share to compensate EDC based on the terms set forth in this MOU. C. The City of San Marcos has engaged the EDC for the Innovate 78 Economic Development Initiative pursuant to a services agreement ("EDC Services Agreement"), which is incorporated herein by this reference. The work to be provided by EDC is set forth in a Scope of Work which is attached as Exhibit B ("Scope of Work"). NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, the five Cities agree as follows: 1. EDC Services Agreement (A) The Cities acknowledge that EDC and the City of Carlsbad and City of Escondido have effectively executed the first four years of EDC Services Agreement on behalf of the 78 Corridor Cities. The 78 Corridor Cities want to execute a one-year agreement with an option to renew for an additional year as of June 30, 2018, which will become effective upon the complete execution of this MOU by each of the five Cities. The One Year Service Agreement with EDC will be managed by the City of San Marcos. Performance of the EDC Services Agreement is intended to result in furthering 1 May 22, 2018 Item #1 Page 7 of 30 Page 2 of 6 the Innovate 78 Economic Development Initiative as described in Exhibit A. For that work, EDC will receive an annual total base contract amount of One Hundred and Ninety Thousand ($190,000), assuming the full expense allotment is used ("Contract Price"). (8) The City of San Marcos makes no representation regarding the completeness, or quality of the work that EDC will produce under the EDC Services Agreement. In directing EDC pursuant to the EDC Services Agreement, the City of San Marcos will, when reasonably possible, provide direction based on the consensus of all Cities. If consensus is not obtained after a consultation period with all 78 Corridor Cities within Thirty Days (30) days, and if the Cities have not acted collectively to amend or terminate this MOU or the EDC Services Agreement, the City of San Marcos reserves the right to provide direction to EDC to assure that its efforts are not stopped, stalled or otherwise delayed. 2. Cooperative Efforts For EDC to successfully carry out the scope of work for the Innovate 78 Economic Development Initiative, each 78 Corridor City must: (1) provide EDC with information about the city, its community, its businesses, and its other attributes; (2) make available to EDC representatives from city government, civic groups, business groups and others comprising the city; (3) identify venues within the city for meetings, (4) participate in meetings with EDC and other 78 Corridor Cities for the development and refinement of elements of the Innovate 78 Economic Development Initiative; and (5) otherwise participate in the development of the Innovate 78 Economic Development Initiative in the manner described in the Scope of Work. 3. Term This MOU shall be effective as of the first date written above and shall continue in full force and effect unless sooner terminated as provided in Section 4 of this MOU, below. 4. Termination Should any City wish to terminate this MOU, the City desiring to terminate this MOU shall provide written notice of such termination to the 78 Corridor Cities at least fifteen (15) days in advance of the termination date. Upon the expiration of the fifteen (15)-day notice period, each City's rights and obligations to the other City as set forth shall cease and be of no further force or effect. 2 May 22, 2018 Item #1 Page 8 of 30 Page 3 of 6 3. Payments for Funding the EDC Services Agreement (A) To fund the EDC Services Agreement, each City will allocate and pay on July 1 to the City of San Marcos a sum of Thirty-eight Thousand ($38,000), representing one-fifth of the Contract Price ("City Contract Share"). The City of San Marcos will hold the City Contribution for each City, including the City of San Marcos, and collectively use those City Contributions to make payments due to EDC under the EDC Services Agreement. (B) Should it be determined that a change in the Scope of Work is advisable which will require additional funds beyond the base Contract Price as detailed in the Scope of Work, the City of San Marcos shall notify the 78 Corridor Cities of the additional services ("Additional Services") and the price for those services ("Supplemental Cost"). With that notice, the City of San Marcos will provide the 78 Corridor Cities with a proposed Addendum to the EOG Services Agreement ("Services Agreement Addendum") describing the Additional Services to be provided at the Supplemental Cost. Based on those materials, each 78 Corridor City will be asked to execute an addendum to this MOU ("MOU Addendum ") to enable the City of San Marcos to fund the Additional Services. Should each 78 Corridor City execute the MOU Addendum, then within ten (10) days thereafter: (1) each 78 Corridor City shall transfer to the City of San Marcos a sum equal to one-fifth of the Supplemental Cost; and (2) the City of San Marcos will execute the Services Agreement Addendum. (C) Following the completion or termination of the EDC Services Agreement, the City of San Marcos shall determine if any amount is left unexpended from the collective City Contributions and shall return to each 78 Corridor City a sum equal to one-fifth of that amount. 4. TRADEMARK AND COPYRIGHT OF WORKS The 78 Corridor Cities recognize that EDC will generate graphics, taglines and other materials ("Works") which may require a trademark, copyright, or similar registry to be protected under Federal or State law, which shall be obtained by EDC, or its subcontractor, for the benefit of the 78 Corridor Cities. The 78 Corridor Cities acknowledge that each, as an owner of a trademark, will responsible to police infringing uses of its trademark. If the 78 Corridor Cities do not enforce its trademark rights or otherwise fail to maintain quality control over the trademark (i.e. a naked license), trademark rights may be lost. This is also true regarding the responsibility to police infringing uses of their copyrights. The 78 Corridor Cities agree that they will 3 May 22, 2018 Item #1 Page 9 of 30 Page 4 of 6 reasonably police their intellectual property rights and promptly take reasonable steps to prevent infringing and unauthorized use of their trademarks and copyrights. Upon learning of a potential infringement or unauthorized use, the 78 Corridor Cities shall meet, discuss and select an appropriate course of action to reasonably prevent infringement or unauthorized use of their intellectual property rights. 5. MISCELLANEOUS (A) The terms of this MOU are intended by the parties as a final expression of their agreement with respect to such terms as are included in this MOU and may not be contradicted by evidence of any prior or contemporaneous agreement. This MOU specifically supersedes any prior written or oral agreement between the parties. (B) This MOU may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties hereto have executed this Assignment on the date first above written. CITY OF VISTA CITY OF ESCONDIDO By:~~ Jeff~. Epp~a~ ATTEST: ATTEST: Kathy Valdez, City Clerk Diane Halverson, City Clerk ROVED AS TO FORM: APPROVED AS TO FORM: Darold Pieper, City Attorney Michael R. McGuinness, City Attorney By:-1#~- 4 May 22, 2018 Item #1 Page 10 of 30 Page 5 of 6 (Signatures continue on next page). 5 May 22, 2018 Item #1 Page 11 of 30 CITY OF OCEANSIDE ATTEST: Zach Beck, City Clerk By: -fJ2:~ u APPROVED AS TO FORM: John Mullen, City Attorney ATTEST: Page 6 of 6 CITY OF SAN MARCOS By:_-;£------>.---->.-----=,,,c--+-----1--------- Jack ATTEST: Phillip Scollick, City Clerk By:~ APPROVED AS TO FORM: Helen Holmes Peak, City Attorney By ~~~ ., By: __) 6 May 22, 2018 Item #1 Page 12 of 30 Exhibit B --Scope of Work-Innovate 78 Contract-July 2018 through June 2019 The following lnnovate78 scope of work was created with the input of the five cities as well as recommendations from San Diego Regional EDC. This document serves as a plan for the goals and activities to be managed by the lnnovate78 Regional EDC staff with the participation of the economic development staff of each city. 2018 activities will focus on the following areas: 1. Business Expansion, Attraction and Retention (BEAR) Work a. Company Project Work b. Startup78 Ecosystem Development c. Business Attraction Toolkit and Tracking d. Industry Supply Chain Mapping: Life Sciences, Tech and Construction 2. Talent Pipeline Development a. Career Development Events b. Industry Talent Pipeline Mapping: Life Sciences, Tech 3. Data and Research a. Track and update key economic indicators b. Conduct research studies 4. Communications and Branding a. Inbound marketing: Website Content, Print Collateral, Media Relations and Social Media b. Outbound marketing: Sponsorships, Community Engagement Events 5. Contract Support a. Regional Integration b. Strategic Partnerships c. Reporting 1. BEAR Work 1. a. Company Project Work Goal: Support economic growth along the 78 Corridor through retaining and expanding businesses. Individual company work is one of the primary ways that EDC learns of threats and opportunities, as well as trends within or across industries. EDC staff will hold a minimum of 4 individual company meetings each month with economic development staff. EDC will also provide monthly "intelligence" to individual cities and/or the five cities collectively, regarding potential opportunities or threats to expansion and growth, attraction, or retention. 2018 2019 03 04 01 02 Cal Competes Workshops -lnnovate78 and California GO-BIZ office /* /* sponsored events that inform businesses on how to apply for Cal Competes. Regional EDC offers free application and guidance for companies. Success measured in number of applicants. *if renewed in new fiscal year 1 May 22, 2018 Item #1 Page 13 of 30 Business Meetings -Scheduled and impromptu meetings and conversations ../ ../ ../ ../ with business leaders to learn more about their business needs. Success measured in number of meetings held, minimum of four each month. Industry Roundtables -gatherings of industry leaders around innovative ../ ../ strategies to spur economic activity around a specific industry. Success measured in completion of summary report from the meetings for lnnovate78 team to use to create action plans. Connectory Education Workshop -The Connectory is a cloud-based ../ directory that companies can use to connect with local vendors to improve their supply chain. Success measured in new Connectory users and three new user testimonials. 1. b. Startup78 Ecosystem Development Goal: Further develop the entrepreneurial ecosystem along the 78 Corridor to retain, expand and attract startup businesses. EDC understands that there is a growing community of entrepreneurs, investors and support services along the 78 Corridor. This initiative will convene leaders to create a more robust network of connected entrepreneurs, capital resources, and support services. 2018 2019 Q3 Q4 Q1 Startup78 Workstreams Meetings -a Workstream is a sub-committee of the Regional EDC's Economic Development Committee aimed at completing tasks to spur economic development related to a specific industry. This Workstream is responsible for ../ ../ N/A organizing and debriefing the Startup78 day during Startup Week. Startup78 Meetup -Quarterly meetings hosted by community startups and facilitated by Innovate 78. Measure of success: averaqe of 20 attendees per meetinq. ../ ../ ../ Collaborate with local startup resources to promote their events - Resources for the startup ecosystem host workshops and speakers throughout the year. N/A N/A ../ We will maintain contact with key resources to extend their reach and encourage startup participation. Measure of success: attend and promote 3-5 events. Startup Week Planning Participation -work with San Diego Startup Week to help plan content for the 2019 Startup Week activities in North County. ../ ../ ../ 1. c. Business Attraction Toolkit and Tracking Goal: Encourage the use of a toolkit for the 78 Corridor cities to use in cases of company attraction efforts, and create guidelines to encourage local CEO/ business leader referrals. EDC will encourage Economic Development manager use of a toolkit for business attraction that the five cities can leverage to proactively attract businesses to the 78 Corridor. 2018 2019 Q3 Q4 01 Q2 Proactive outreach to local companies -create a target list of 25 companies N/A to request business attraction leads from. N/A ../ Facilitate five business attraction deals -utilize the proactive outreach list ../ and collaborate with economic development managers to leverage relationships with N/A N/A the broker community to help locate five businesses to the corridor, one to each city. Track attraction referrals -each economic development manager and the ../ ../ ../ lnnovate78 team will input prospective leads into the database. Success measured in number of leads inputted into the data base by each economic development manager. Q2 N/A ../ ../ ../ 2 May 22, 2018 Item #1 Page 14 of 30 Respond to RF ls in a timely manner -re spond to 100% of requests for information and ro osals received. ,/ ,/ ,/ ,/ 1. d. Industry Supply Chain Mapping Goal: Identify supply chain companies for specific industries to identify gaps and encourage the use of products and services supplied by local companies. EDC will leverage conversations, roundtables and the Connectory meeting conducted in 2018 to begin to identify local suppliers for three industries: life sciences, tech and construction companies. 2018 2019 Q3 Q4 Q1 Q2 Identify company partners -solidify relationship with at least one company in N/A N/A ,/ each industry that is willinq to share their supply chain details. Identify industry group partners -discover and partner with appropriate ,/ industry professional groups or trade associations that can provide insight into the N/A N/A suoolv chain. Create supply chain list by industry -build an excel sheet that can be turned N/A NIA ,/ into an infoqraphic that lists companies alonq the supply chain for each industry. 2. Talent Pipeline 2. a. Career Development Events Goal: Develop and connect talent to industry. The most prominent challenge for most businesses is finding and hiring qualified talent. EDC will execute programming to bolster the talent pipeline along the 78 Corridor. In addition to specific activities listed, EDC will identify challenges and trends through individual company outreach and roundtable discussions mentioned previously in this document. 2018 2019 Q3 04 01 Sponsor lnnovate78 company participation at UCSD Career Fairs -fall ,/ and sorinq events. Sponsor lnnovate78 company participation at CSUSM Career Fair-fall ,/ ,/ and sprinq events Link to San Diego workshops -connecting talent to career opportunities in North County. Success measured bv four companies enqaqed. lnnovate78 Hackathon -collaborate with CSUSM and other relevant partners to N/A N/A encouraqe and support a hackathon event that addresses a 78 Corridor challenqe. 2. b. Talent Pipeline Mapping Goal: Show students and professionals examples of how to achieve career goals through regional education programs, company internships and available jobs. Navigating career pathways can be challenging for new and established professionals. By working with industry and educational partners EDC will work to create examples of talent pipelines available along the 78 Corridor. Q2 ,/ ,/ ,/ 3 May 22, 2018 Item #1 Page 15 of 30 2018 2019 03 04 01 Maintain Relationships with Education Partners -one-on-one and group meetings with key education partners CSUSM and the ,/ ,/ ,/ Community College leaders Establish Private Sector Talent Pipeline Partners -Conduct meetings and ,/ achieve buy-in from HR professionals at key companies with internship programs. Goal N/A N/A of at least two life sciences companies and two tech companies. Life Sciences and Tech Talent Pipeline Document -Work with existing industry and education partners to identify ways students and professionals can receive N/A N/A traininq to achieve their career qoals. 3. Data and Research Goal: Provide a better understanding of economic drivers in North County and provide data reports and pamphlets that make data clear and easy to understand. EDC strives to take a data-backed approach to its work. Research informs trends, highlights challenges, and quantifies industry growth. EDC will conduct specific research for the 78 Corridor to understand key trends. 2018 2019 03 04 01 02 Digital Economic Dashboard -Ongoing updates to the data displayed on the website. ,/ ,/ ,/ ,/ Small Business Study -research, survey and analysis of the small business ,/ environment along the 78 Corridor. Research TBD -research , survey and analysis of new topic TBD in 2018. ,/ Explore City Data Sharing Possibilities -roundtable meetings with data ,/ ,/ architects at each city to start exploring how to better share data with each other N/A N/A and the public to benefit the corridor 02 ,/ ,/ ,/ 4 May 22, 2018 Item #1 Page 16 of 30 4. Communications and Branding 4. a. Inbound marketing: Website Content, Print Collateral, Media Relations and Social Media Goal: Further elevate the 78 Corridor brand to businesses, talent and key stakeholders. While the scope of work focuses on core economic development work, it remains imperative to maintain and grow the lnnovate78 brand strength. EDC will publish regular and periodic content through various channels like social media, e-newsletter, website, and traditional media with the goal of capturing contact information to build our target audience. 2018 2019 Q3 Q4 Q1 Q2 Strategic Messaging Document -create talking points for city officials based N/A N/A / on data and reaional success stories Print version of the 78 Corridor Dashboard (updated quarterly) -design / / / / and maintain current data in a downloadable .pdf form available on the website 5 New Business Profiles -collect information on five businesses not currently N/A N/A / featured on lnnovate78. Pitch Media Contacts on Stories -maintain relationships with press / / / / contacts to pitch lnnovate78 activities as stories for publication Social Media and Digital Marketing Presence -ongoing twitter and blog / / / / posts plus email newsletter 4. b. Outbound marketing: Sponsorships, Community Engagement Goal: Expand the 78 Corridor brand to new audiences through strategic event sponsorships. EDC will continue to recommend sponsorships by lnnovate78 of strategic events and/or programs that will draw exposure to the 78 Corridor. EDC will recommend events with qualified audiences of businesses or talent, within or external to the region. 2018 2019 Q3 Q4 Q1 Q2 CALED annual conference -Date TBD / EDC annual dinner -Date TBD / ICSC RECon in partnership with Team California *dependent on / results of 2018 participation 5. Contract Support 5. a. Regional Integration Goal: Ensure the 78 Corridor is represented in broader regional efforts. 5 May 22, 2018 Item #1 Page 17 of 30 In addition to the specific services listed above, EDC will work to ensure inclusion of lnnovate78 cities and companies in broader EDC programming like: • Regional Inclusive Growth Strategies • MetroConnect • San Diego Life. Changing Campaign • Operation San Diego defense strategy 5. b. Strategic Partnerships • Talent Pipeline Management Program • Regional trade missions and relevant inbound delegations Goal: Engage organizations with domain expertise to expand support in areas beyond EOG expertise. At the request of the five cities, EDC will pursue strategic partnerships with organizations that can bolster creative retail support strategies and/or further strengthen commercial real estate activity. EDC will also work to develop strategic relationships with organizations that can quickly implement core strategies, like Startup78. EDC will pursue discussions with the following organizations to evaluate potential partnerships. • ULI • San Diego Venture Group • NAIOP • Entrepreneurs Organization • Startup Week -San Diego • CSU San Marcos • EvoNexus • SBDC/SBA • San Diego Coworking Alliance • Chambers of Commerce 5. c. Reporting Goal: Ensure the five 78 Corridor cities stay informed of progress at appropriate intervals. EDC recognizes that reporting is an important way to maintain transparency and communication with 78 Corridor stakeholders. To ensure timely and complete report, EDC will perform the following updates: • Monthly City Staff update with in-depth topic discussion • Quarterly Mayor's update • Semi-annual reporting to City Council as requested by lnnovate78 cities 6 May 22, 2018 Item #1 Page 18 of 30 Exhibit 3 SAN MARCOS CITY COUNCIL MEETING April 10, 2018 Exhibit "C" CONSULTANT SERVICES AGREEMENT NO. BE'IWEEN CITY OF SAN MARCOS AND SAN DIEGO REGIONAL ECONOMIC DEVELOPMENT COPRORATION (EDC) This Agreement for CONSULT ANT Services ("Agreement") is entered into as of this __ day of____, 20_, between the CITY of San Marcos, a chartered municipal corporation ("CITY"), and San Diego Regional EDC, a California non-profit organization ("CONSULTANT") hereinafter referred to individually as "Party" and collectively, the "Parties". RECITALS WHEREAS, CITY desires to obtain the services of CONSULTANT to continue the "Innovate 78"economic development initiative in collaboration with the cities of Carlsbad, Escondido, Oceanside and Vista for one-year with an option to renew for an additional year; and WHEREAS, CONSULTANT warrants and represents that they are experienced and staffed in a manner such that they are and can deliver such services to CITY; and WHEREAS, CITY has authorized the preparation and execution of this Agreement to retain the services of CONSULTANT as set forth below. NOW, THEREFORE, the Parties agree as follows: 1. Scope of Work CONSULTANT will provide services to CITY as described in Exhibit B entitled "Scope of Work" attached hereto and incorporated by reference. CONSULTANT must perform the Scope of Work in accordance with Exhibit B and approved by CITY, but in no event will any work be performed under this Agreement before the same is executed by both Parties. CITY must consent in writing to any changes to the Scope of Work, with such consent to be in CITY's sole discretion, affected by written addendum or amendment to this Agreement. Exhibit B will be deemed revised in accordance with any revisions for which CITY's consent has been issued. Any revisions to the Scope of Work for which CITY's consent has not been issued will be null and void. 2. Funding This project is funded by Local Funds. 3. Compensation and Reimbursement May 22, 2018 Item #1 Page 19 of 30 The CITY will pay the CONSULTANT in accordance with the conditions specified in "Exhibit A-MOU" an annual sum of $190,000. Any breach of this Agreement will relieve CITY from the obligation to pay CONSULT ANT, if CONSUL TANT has not corrected the breach after CITY provides notice and a reasonable time to correct it. 4. Term of Agreement This Agreement shall go into effect on July 1, 2018 contingent upon approval by CITY, and CONSULTANT shall commence work after notification to proceed by CITY. The Agreement shall end on June 30, 2019 unless extended by Agreement addendum or amendment, as provided in Section 6 of this Agreement, below, or earlier termination pursuant to Section 7 of this Agreement, below. CONSULTANT is advised that any recommendation for Agreement award is not binding on CITY until the Agreement is fully executed and approved by CITY. 5. Time of Essence Time is of the essence with respect to the obligations of each Party under this Agreement. 6. Time for Completion of Work -Extensions CITY and CONSULTANT have agreed on a time schedule, as provided in "Scope of Work-Exhibit B". All professional services required by this Agreement must be satisfactorily completed within the indicated time after CONSUL TANT receives written authorization from the CITY Manager or Delegated Designee to proceed. Should CONSUL TANT begin work in advance of receiving written authorization to provide any professional services performed by it, then such services will be considered as having been done by CONSULTANT at its own risk and as a volunteer unless said professional services are authorized by the CITY. Any delay determined to be occasioned by causes beyond the control of CONSUL TANT will be reason for the granting of extension of time for the completion of such services. When such delay occurs, CONSULT ANT must immediately notify the CITY in writing of the cause and the extent of the delay, whereupon the CITY will ascertain the facts and the extent of the delay and grant an extension of time for the completion of the professional services when, in his or her judgment, his or her findings of fact justify such an extension of time. The CITY's findings of fact will be final and conclusive as to the Parties. This is not intended to deprive CONSULTANT of its civil legal remedies in the event of a dispute. 7. Termination This Agreement may be terminated with or without cause by CITY. Termination without cause will be effective only upon 15-day written notice to CONSULTANT. During said 15-day period CONSUL TANT must continue to perform all consulting services in accordance with this Agreement, after which CITY will pay CONSULTANT for its reasonable costs and expenses incurred prior to receipt of the termination notice. This Agreement may be terminated by CITY for cause in the event of any of the following: (i) a material breach of this Agreement by CONSULT ANT; (ii) Page 2 May 22, 2018 Item #1 Page 20 of 30 misrepresentation by CONSULT ANT in connection with the formation of this Agreement or the performance of services; and/or (iii) CONSULTANT's failure to perform services under this Agreement as directed by CITY. Termination for cause will be effective immediately upon the delivery of written notice of termination to CONSULT ANT, after which CITY will pay CONSULT ANT for its reasonable costs and expenses incurred prior to receipt of the termination notice. Upon termination of this Agreement, CONSULT ANT must return any confidential information which was provided by CITY, in the event such information is in a format that makes it feasible to return to CITY. 8. Office Space and Clerical Support Unless otherwise specified in Exhibit B, CONSULTANT will provide its own office space and clerical support at its sole cost and expense. 9. Confidential Relationship CITY may from time to time communicate to CONSULTANT certain information to enable CONSULTANT to effectively perform the services. CONSULTANT must treat all such information as confidential, whether or not so identified, and must not disclose any part thereof without the prior written consent of CITY. CONSULTANT must limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services. The foregoing obligation of this Section 8, however, will not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of CONSUL TANT, hereafter disclosed in publicly available sources of information; (iii) is now in the possession of CONSULTANT without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to CONSULTANT by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party. CONSULTANT must not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this Agreement without the prior written consent of CITY. In its performance hereunder, CONSULTANT will comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation. Consultant must only use and/or disseminate such confidential information for purposes required by this Agreement and/or otherwise required by federal, state or local law. Consultant acknowledges and agrees that it is responsible for the unauthorized collection, receipt, transmission, access, storage, disposal, used and disclosure of such confidential information under its control or in its possession by Consultant and/or its employees, agents, contractors and representatives. If such confidential information is disseminated by Consultant under circumstances not authorized by this Agreement or City, Consultant must contact City immediately and work with City to remedy the wrongful dissemination of such confidential information, including but not limited to cooperating with and assisting City with any investigation of the data or security breach, providing City with access to all relevant records, logs, files, data reporting and other materials required by City, and facilitating interviews between the City and its employees, agents, contractors and/or representatives. Any act or omission by Consultant and/or its employees, agents, contractors and representatives that compromises either the security, confidentiality or integrity of the Confidential Information or the safeguards put in place by City or Consultant relating to the protection of the security, confidentiality or integrity of confidential information constitutes a material breach of this Agreement for which City may immediately terminate the Agreement without further liability or obligation to Consultant. Page 3 May 22, 2018 Item #1 Page 21 of 30 J In the event of termination of this Contract, CONSULT ANT agrees that it will return any confidential information which was provided by CITY. In the event such information is in a format that makes it feasible to return same to CITY. 10. Covenant Against Contingent Fees CONSULT ANT declares that it has not employed or retained any company or person, other than a bona fide employee working for CONSULTANT, to solicit or secure this Agreement, that it has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or making of the Agreement. For breach of violation of this warranty, CITY has the right, but not the obligation, to annul this Agreement without liability, or, at its sole discretion, to deduct from the Agreement price or consideration, or otherwise recover the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee. I 11. Ownership of Doruments All memoranda, reports, plans, specifications, maps and other documents prepared or obtained under the terms of this Agreement will be the property of CITY. CONSULTANT must promptly provide such documentation to CITY in electronic and/ or other format as determined by CITY. In the event of any re-use or alteration of the documents, such re-use or alteration will be the responsibility of CITY. Upon expiration or earlier termination of this Agreement, CONSULTANT must return to CITY any and all equipment, documents or materials and all copies made thereof which CONSUL TANT received from CITY or produced for CITY for the purposes of this Agreement. 12. Conflict of Interest and Political Reform Act Obligations During the term of this Agreement, CONSUL TANT will not act as Consultant or perform services of any kind for any person or entity whose interests conflict in any way with those of CITY. CONSULTANT will at all times comply with the terms of the Political Reform Act and the local conflict of interest ordinance. CONSULTANT will immediately disqualify itself and will not use its official position to influence in any way any matter coming before the CITY in which the CONSULTANT has a financial interest as defined in Government Code Section 87103. CONSULTANT represents and warrants that it has no knowledge of any financial interests which would require it to disqualify itself from any matter on which it might perform services for CITY. CONSULT ANT must comply with all of the reporting requirements of the Political Reform Act and local ordinance. Specifically, CONSULT ANT must file Statements of Economic Interest with the CITY Clerk in a timely manner on forms which CONSULT ANT must obtain from the CITY Clerk. 13. No Assignments/Work by Subcontractor Neither any part nor all of this Agreement may be assigned or subcontracted, except as otherwise specifically provided herein, or to which CITY, in its sole discretion, consents to in advance thereof in writing. Any assignment or subcontracting in violation of this provision shall be void. All subcontractors listed (if any) must provide a meaningful element of work within the defined scope of work. Changes to the subcontractor list during the term of the Agreement shall be approved in writing by the City prior to the start of work by the subcontractor. If applicable, Subcontractor's Page4 May 22, 2018 Item #1 Page 22 of 30 subject to prevailing wage will be required to register with the Department of Industrial Relations (DIR). 14. Maintenance of Agreement Documentation CONSUL TANT must maintain all books, documents, papers, employee time sheets, accounting records and other evidence pertaining to costs incurred and must make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by CITY and copies thereof must be furnished, if requested. 15. Ownership of Records All memoranda, reports, plans, specifications, maps and other documents prepared or obtained under the terms of this Agreement will be the property of CITY. CONSULT ANT must promptly provide such documentation to CITY in electronic and/or other format as determined by CITY. 16. Independent Contractor. Consultant Not an Agent At all times during the term of this Agreement, CONSULT ANT will be an independent contractor and will not be an employee, agent, partner or joint venturer of CITY. Except as CITY may specify in writing, CONSULT ANT has no authority, expressed or implied, to act on behalf of CITY in any capacity whatsoever as an agent. CONSUL TANT has no authority, expressed or implied, pursuant to this Agreement to bind CITY to any obligation whatsoever. CITY has the right, but not the obligation, to control CONSULTANT insofar as the results of CONSUL TANT's services rendered pursuant to this Agreement; however, CITY does not have the right to control the means by which CONSULT ANT accomplishes such services. 17. Warranties and Representations CONSULTANT warrants and represents that CONSULTANT possesses the requisite skills and resources to perform the services required by the Scope of Work in a reasonable and worker like manner. CONSULT ANT further represents and decl.ares to CITY that it has all licenses, permits, qualifications and approvals of whatever nature which are legally required to practice its profession, and that it will at its sole cost and expense, keep in effect at all times during the term of this Agreement, any such license, permit or approval. 18. Personnel CONSULTANT must assign qualified and certified personnel to perform services under this Agreement. CONSULT ANT's personnel must at all times comply with CITY's drug and alcohol policies then in effect. CITY has the right, but not the obligation, to review and disapprove personnel performing work under this Agreement. CITY has the unrestricted right, but not the obligation, to require the removal of any person(s) assigned by CONSULTANT by giving oral or written notice to CONSULTANT to such effect. 19. Licenses. Permits. Etc. CONSULTANT represents and declares to CITY that it has all licenses, permits, qualifications and approvals of whatever nature which are legally required to practice its profession. CONSULTANT Page 5 May 22, 2018 Item #1 Page 23 of 30 represents and warrants to CITY that CONSULTANT will, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any license, permit or approval which is legally required for CONSULTANT to practice its profession. 20. Insurance 20.1 Policies. CONSULTANT must obtain and maintain during the entire term of this Agreement the following insurance policies from companies admitted or authorized in the State of California to transact the insurance business in the class of the type provided and must have a general policyholder's rating of not less than an "A" and a financial size of ten million dollars ($10,000,000) ( currently Class V) or better in the most current A.M. Best's Key Rating Guide; which standards will be met by such the issuing company and not by means of the standing or assets of their parent, subsidiary or affiliate entities: a. Comprehensive General Liability. Coverage shall include premises-operations, products/completed operations (10 years), broad form property damage, personal injury, bodily injury and blanket contractual liability, shall be provided on a "pay on behalf' basis, with defense costs payable in addition to policy limits, there shall be no cross-liability exclusion, there shall be no land subsidence exclusion, and there shall be no prohibition against payment of a SIR or deductible in the event of the named insured's failure to do so, in the following coverage amounts: i. $1,000,000 per occurrence (property damage and bodily injury); ii. $2,000,000 general aggregate; iii. $2,000,000 products/completed operations aggregate. b. Automobile Liability. Coverage shall include owned, hired and non-owned vehicles, shall be provided on a "pay on behalf' basis, with defense costs payable in addition to policy limits, there shall be no cross-liability exclusion, and there shall be no prohibition against payment of a SIR or deductible in the event of the named insure d's failure to do so, in the following coverage amounts: i. $1,000,000 per accident combined single limit (bodily injury and property damage). c. Professional Liability Insurance with policy limits ofnot less than $1,000,000 combined single limits per claim and annual aggregate. d. Workers' Compensation Insurance in amounts in accordance with statutory requirements. Limits may be met by a combination of primary and umbrella/excess liability policies, provided that: (1) the umbrella/excess policy carriers meet the requirements noted above, (2) there is sufficient umbrella/excess coverage provided that meet or exceed the specified coverage requirements of GL or Auto, so that any claim event will not result in a deficiency in any of the coverage requirements described above; and (3) umbrella/excess insurance amounts may be applied only once to meet the insurance coverage requirement for only one line of deficient underlying insurance. 20.2 Endorsements. Endorsements must be obtained so that each policy contains the following four provisions, the wording for which will be to the satisfaction of the City Attorney: Page 6 May 22, 2018 Item #1 Page 24 of 30 a. Additional Insured. (Not required for Professional Errors and Omissions Liability Insurance or Workers' Compensation.) "City ofS'an Marcos and its elected and appointed boards, officers, agents and employees are additional insureds with respect to this subject project and Agreement with CITY". b. Preferred Forms. General Liability: CG 2010 1185, CG 2037 1001 or the equivalent. c. Notice. "Said policy shall not terminate, nor shall it be canceled or reduced in coverage without thirty (30) days' written notice to the City of San Marcos." d. Primary Coverage. "The policy provides primary coverage to City of San Marcos, and its elected and appointed boards, officers, agents, and employees. It is not secondary or in any way subordinate to any other insurance or coverage maintained by City of San Marcos." e. Waiver of Subrogation. "We waive any right of recovery we may have against the City of San Marcos and its elected and appointed boards, officers and employees because of payments we make for injury or damages arising out of your ongoing operations or your work done under Agreement with the City of San Marcos." 20.3 Insurance and Indemnity Obligations Separate. The requirements as to the types and limits of insurance coverage to be maintained by CONSUL TANT as required by this Section 19, and any approval of such insurance by CITY, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by CONSULTANT pursuant to this Agreement including, but not limited to, the indemnification provision. 20.4 Subcontracts. CONSULT ANT shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, including but not limited to ensuring the CITY is listed as additional insured on insurance required from subcontractors. CONSULTANT agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. CONSULTANT agrees that upon request, all agreements with subcontractors and all others engaged in the project will be submitted to CITY for review. 20.5 Special Risk or Circumstance. CITY reserves the right during the term of the contract to change the amounts and types of insurance required by giving the CONSULTANT ninety (90) days advance written notice of such change based on a material change in the nature or scope of the risk, experience, or events during performance, regulatory actions or changes, statutory or case law changes, insurer's actions, coverage restrictions, coverage availability, or other special circumstances 21. Insurance Certificates CONSULTANT must provide CITY with certificates of insurance and accompanying endorsements showing the insurance coverages described in the paragraphs above, in a form and content approved by CITY, prior to beginning any work under this Agreement. CITY utilizes an online Evidence of Coverage database, PINS Advantage, to electronically maintain the insurance documents required by this Section. CITY will send CONSULTANT an automatic email Page 7 May 22, 2018 Item #1 Page 25 of 30 through the PINS system with information to provide to CONSULTANT's insurance representative to upload insurance documents into the CITY's system. 22. Indemnification To the fullest extent permitted by law, CONSUL TANT must indemnify, protect, defend and hold harmless the CITY of San Marcos and its elected and appointed boards, officers, agents and employees (collectively, "CITY Indemnified Parties") from and against any and all actions, judgments, losses, liabilities, damages, costs and expenses, including without limitation reasonable attorneys' fees and court costs of any kind whatsoever resulting from or in any way connected with any personal injury, including death, or property damage that may arise out of, pertain to, or relate to the performance of this Agreement by CONSUL TANT, its employees, agents, subconsultants or subcontractors, including whether caused by the active or passive negligence of CITY Indemnified Parties, excepting acts caused by the sole or willful misconduct of CITY Indemnified Parties. 23. Dispute Resolution The Parties agree to make a diligent, good faith attempt to resolve any claim, controversy or dispute arising out of or relating to this Agreement, or concerning the breach or interpretation thereof. If a dispute arises between the Parties that cannot be settled after engaging in good faith negotiations, the parties agree to resolve the dispute pursuant to the following procedures. Each Party shall designate an authorized representative to negotiate the dispute, and said representative will attempt to resolve the dispute by any means within their authority. , If the issue remains unresolved after thirty (30) days, the Parties will resolve any remaining dispute through (non-binding) arbitration. The non-binding arbitration process will provide for the selection by both Parties of a disinterested third person arbitrator within thirty (30) days. If the Parties cannot agree upon an arbitrator, then a single neutral arbitrator will be appointed pursuant to Section 1281.6 of the Code of Civil Procedure. The place of the arbitration shall be in San Diego County, California. The arbitrator will follow the substantive laws of the State of California, including rules of evidence, and the arbitrator's decision will be supported by substantial evidence. The arbitrator will have no power, authority or jurisdiction to award any punitive or exemplary damages. The award will be made within six (6) months, and the prevailing Party will be entitled to an award of reasonable attorneys' fees, CONSUL TANT and expert witness fees, and any and all costs for services rendered to or for such prevailing Party. If non-binding arbitration does not result in settlement of the dispute within six (6) months, either Party may pursue other legal remedies for a determination of the dispute. This provision is not intended to, nor shall it be construed to, change the time periods for filing any claim or action under Government Code Sections 900, et seq. This dispute resolution process is a material condition to this Agreement and must be exhausted as an administrative remedy prior to either party initiating litigation. By executing this Agreement, you are agreeing to the dispute resolution process described in this section, and are giving up any rights you might possess to have the dispute litigated in a court or by jury trial. CITY (init'ls) CONSULTANT (init'ls) 24. Notices Page 8 May 22, 2018 Item #1 Page 26 of 30 Any and all notices, demands, requests, consents or other communications, including but not limited to billings and payments which are required or permitted to be made hereunder must be in writing and must be sent by personal delivery; first-class mail, return receipt requested; overnight or express mail service; or facsimile. Notices will be deemed to have been received: upon delivery if personally delivered; seventy-two (72) hours after deposit in the U.S. Mail; on the day of transmission via facsimile unless sent after business hours and in that event, on the next business day. Notices may be sent to the following addresses; the parties may deliver notice of change of address or delivery information in the manner outlined in this Section 23. CITY (Original): CITY (Copy): CONSULTANT: City of San Marcos Finance Department 1 Civic Center Drive San Marcos, CA 92069-2918 Facsimile: (760) 744-9520 City of San Marcos Administration Attn: Economic Development Manager 1 Civic Center Drive San Marcos, CA 92069-2918 Facsimile: (760) 591-4135 Facsimile: _______ _ 25. Entire Agreement. Modification This Agreement, and any exhibits and attachments hereto, constitutes the entire understanding between the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, discussions, representations, agreements and/ or understandings concerning the same. This Agreement may not be amended, modified or altered except by an agreement in writing and signed by both Parties. No verbal amendment or implied covenant will change any provision of this Agreement. 26. Exhibits and Recitals The attached Exhibits and all Recitals referenced in this Agreement, and each of them, are hereby incorporated by reference into this Agreement as though set forth in full at this point. 27. Counterparts This Agreement may be executed in any number of counterparts, each of which will for all purposes be deemed to be an original, and all of which taken together will constitute one and the same document. 28. Construction Page 9 May 22, 2018 Item #1 Page 27 of 30 The terms and provisions of this Agreement will be liberally construed to effectuate the purpose of this Agreement. In determining the meaning of, or resolving any ambiguity with respect to, any word, phrase, or provision of this Agreement, no uncertainty or ambiguity will be construed or resolved against either Party under any rule of construction, including the Party primarily responsible for the drafting and preparation of this Agreement. 29. Binding Agreement This Agreement will inure to the benefit of and be binding upon the Parties and their respective successors. 30. Severability The provisions of this Agreement are severable. In the event that any provision of this Agreement, or any element thereof, is found to be invalid, illegal, or unenforceable by any court of competent jurisdiction, the validity and enforceability of the remaining provisions will not be affected and will remain in full force and effect. 31. Waiver No waiver by either Party of any term or provision of this Agreement will be deemed or will constitute a waiver of any other provision of this Agreement, nor will any waiver constitute a continuing waiver unless otherwise expressly provided in writing. 32. Definitions The terms "shall" and "will" used throughout this Agreement are intended to be mandatory. 33. Gender Whether referred to in the masculine, feminine, or as "it," CONSULT ANT means the individual or corporate CONSULTANT and any and all employees of CONSULT ANT providing services hereunder. 34. Applicable Laws CONSULTANT shall observe and comply with all local, state and federal laws, rules, ordinances and regulations in the performance of its obligations under this Agreement. 35. Governing Law. Venue This Agreement will be construed under and in accordance with the laws of the State of California, and appropriate venue for any action or proceeding arising from this Agreement shall be had in the Superior Court of San Diego County, North County Branch. 36. Labor Requirements NOTICE IS HEREBY GIVEN that payment of prevailing wages and compliance with the requirements of California Labor Code Sections 1770 et. seq. IS NOT required for this project. Page 10 May 22, 2018 Item #1 Page 28 of 30 [SIGNATURES APPEAR ON THE FOLLOWING PAGE.] Page 11 May 22, 2018 Item #1 Page 29 of 30 37. Authority to Sign The Parties each represent that all requisite approvals have been secured and that the persons executing this Agreement on their behalf have full authority to do so and to bind such Party to perform pursuant to the terms and conditions of this Agreement. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. AGENCY: City of San Marcos, a Chartered Municipal Corporation By: _________ _ Jack Griffin, City Manager APPROVED AS TO FORM: By: _________ _ Helen Holmes Peak, City Attorney ATTEST: By: _________ _ Phillip Scollick, City Clerk CONSULTANT: San Diego Regional EDC a California non-profit organization By: ________ _ Name: ________ _ Title: ________ _ By: ________ _ Name: ________ _ Title: ________ _ [NOTE: In the event CONSULTANT is a Corporation, the signatures of two separate persons holding different offices must be provided.] Page 12 May 22, 2018 Item #1 Page 30 of 30 Joseph Stewart Management Analyst, Economic Development Division May 22, 2018 Innovate 78 Economic Development Initiative Background •March 2014 –78 Corridor Cities (Carlsbad, Escondido, Oceanside, San Marcos, and Vista) agree to a Memorandum of Understanding (MOU) •June 2014 –78 Corridor Cities agree to contract with San Diego Regional EDC •Year 1 Total Contract Amount: $175,000 (each city paid $35,000/year) •Year 2 Total Contract Amount: $180,000 (each city paid $36,000/year) Background, continued •June 2016-78 Corridor Cities agree to continue with a new two-year contract with EDC •Year 3 Total Contract Amount: $190,000 (each city paid $38,000/year) •Year 4 Total Contract Amount: $190,000 (each city paid $38,000/year) Next steps •The 78 Corridor Cities have elected to agree to a new one-year contract with the EDC •The City of San Marcos will manage the contract – each city will pay an equal amount of the budget •Total Contract Amount: $190,000 (each city will pay $38,000/year) Recommendation •Adopt resolution authorizing the City Manager to approve a Memorandum of Understanding among the cities of Carlsbad, Escondido, Oceanside, San Marcos and Vista for the purposes of continuing to implement the Innovate 78 Economic Development Initiative. •Questions?? CITY COUNCIL UPDATE May 2018 78 CORRIDOR Building businesses: Increased exposure and support to local businesses and strategic partners Fostering talent: Regional support for local talent development and attraction Increasing awareness: Expanded marketing reach to businesses and site selectors INNOVATE78 SERVICE BENEFITS ~~ INNOVATE J.!1. Maintain 78 Corridor data indicators •Over Track and update online and print data dashboard to track economic well being of the 78 Corridor Conduct 78 Corridor research and publish reports •Identify and conduct 78 Corridor specific research. April 2017 release of Tech along the 78 Corridor Communicate Regional Data and Findings •Inclusive Growth findings presented to Innovate78 cities City Specific Economic Profiles •City data profiles for the City of San Marcos and the City of Vista OUR FOUNDATION: DATA + RESEARCH Wi1h a concentration in tech employment 42% above the national average. !he Corridor's diverse and well-established tech cluster has seen steady growth in recent year.; and continues to be a major driver of ~l~t and eoonornic production within the San Oieg,o region. TECH CLUSTER BREAKDOWN The Corridor's tech cluster can be broken down into three dismcl segments that, together, represent more than 70 indusbies and 24,000 jobs. 24,685 J OBS DATM 2.677 BIOTECH & BIOMED DEVICES This segment focuses on development and production of medical devices and pharmaoeuticals, and ncludes the research. tesm,g and analyses of medical products and servioess INFORMATION & COMMUNICATIONS TECH As the traditional anchor of a tech cluster. this segment comprises software and video game development. design and production of computers and related haldwara, and telacommunications products and services. This rapidly ~ing segment supports the Ice.al defense industry'Mtf, navig,-ilion equipment and technology. ship and boat building. and olhEK defense-related products and services_ INNOVATE j)_ Individual company meetings •47 one-on-one company meetings to identify business needs and provide connections to valuable resources California Competes Tax Credit Consulting •19 corridor companies have won $6.2M in tax credits, adding 800+ jobs to the region over the next 5 years •Active consulting with 7 companies creating 200+ jobs Industry Roundtables •Convening of tech leaders along the Corridor led to 78Corridor Tech Industry Impact Study •Q2 2018 Innovate78 will host a conversation with prime contractors on major construction projects BUILDING BUSINESSES: OVERVIEW CALIFORNIA COMPETES INNOVATE j)_ In 2018, Innovate78 is mapping the entrepreneurial ecosystem along the 78 Corridor, creating a list of resources that help startups scale and grow into viable businesses. Learn more at Startup78.com. Key deliverables: •Map of 78 Corridor startup resources •Creation of a Startup78 Quarterly Meetup •Lead a Startup Week Day in North County Key dates: •April 11 –Sponsoring an SDVG event at Make in Carlsbad •April 25 –First Startup78 quarterly meetup at OSML in Vista •June 28 –Startup Week North County event at Common Grounds BUILDING BUSINESSES: STARTUP78 SAN DIEGO VENTURE G R O U p ~ Cdlifornia State University SAN MAR._COS --AMER IC A--'r s SBDC. CALI FORN I SAN DIEGO ANO IMPERIAL NETWORK 1@[•];1111-1·!@1•)1:@•i SAN DIEGO STARTUP WEEK . . . • • • cleant Etc h SAN DI EGO 0 0 FOSTERING TALENT Connecting companies with talent •Introducing companies to qualified talent from our local community colleges and universities Connecting educators with companies •One-on-one and roundtable discussions with educators on how to connect with industry for work-based learning programs Promoting career opportunities •SD. Life. Changing. campaign highlights regional talent and career opportunities National Context: Competition for Talent •Working with the Brookings Institution, developed an Inclusive Growth Narrative as an economic imperative INNOVATE j)_ INCREASING AWARENESS Growing an online community •Strategic online activity has resulted in an 1,803% increase in twitter engagement Attracting press •San Diego Regional EDC relationships with press result in increased press exposure Representing 78 Corridor at state & national events •Participation in CALED to engage with state leaders •Participation in ICSC 2018 conference Global exposure •MetroConnect company success stories •International delegation to the UK in fall 2017 •International delegation to Japan in fall 2018 The number of engagements increased by ·1,803.1% since previous date range Economic development program making waves by Ste,·e Puterski t ·ercn 22. 20:a ... <I!> V1e\\,· 104 C::,o likes f w 8· ®!Sa ESCONDIDO -Se,·eu years ago the fiye cities of the HiglnYay 78 cc Regional Economic Development Co1poration. collaborated and deHI business . Dubbed. lnnoYate 78 and officially created se\"eral years ago. the goal: businesses and employees to No1ih Cotmty. Last month. Escondido Economic DeYelopment Manager Michelle Ge Development Manager Jennifer Schoeneck Yentured to Oakland to pre:: success stories to the East Bay Economic DeYelopment Alliance. At the core oflnnoYate 78 is a collaboration between Carlsbad. Escon, Vista to attract and retain business. If recruiting to one city doesn't ,,·o the other cities where they may haYe a stronger environment for a pa1t '·It was about collaboratiYe reeional economic deYelopment efforts:' C INNOVATE j)_ Building businesses: Held California Competes Tax Credit Workshop at City Administration Building, with 15 businesses attending. Engaged with 12 companies on direct support projects, including the attraction of Watershed Idea Foundry and Diakont Supporting Entrepreneurship: Startup event with SDVG attracted 500 attendees to MAKE. Inclusive Growth: Developing an agenda to close the minority achievement gap and support small businesses CITY HIGHLIGHTS: CARLSBAD INNOVATE ~ '" Matt Sanford Director, Economic Development San Diego Regional EDC ms@sandiegobusiness.org | 619.615.2962 QUESTIONS? Jennifer Schoeneck Manager, Economic Development San Diego Regional EDC jls@sandiegobusiness.org | 858.336.6301 INNOVATE j)_